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Question

A manufacturing company M sells a computer to a distributor D for Rs 22000. The distributor D sells it to a retailer R for Rs 24750 and the retailer sells it to a consumer for Rs 26,000. If the rate of sales tax (under VAT) is 10%, find:

i) the amount of VAT collected by the government on the sale of computer

ii) the amount that the consumer pays for the machine.


A

Rs 2500 , 38500

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B

Rs 2600 , 28600

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C

Rs 2600 , 25000

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D

Rs 3000 , 28600

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Solution

The correct option is B

Rs 2600 , 28600



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